• FY 2021 Investment volume analysis in Spain

    January, 2022

Total investment in the real estate sector (including offices, retail, logistics, multifamily, retirement homes, student residences and hotels) has attained the figure of c. €12,000 million by the end of 2021, representing an increase of 33% over the previous year and exceeding the forecasted volume.

With that 33% of increase, this closing year has significantly surpassed the real estate investment of 2020, returning to an up-trend market situation. Specifically, for the commercial real estate segment (offices, logistics and retail), investment in 2021 has stood alongside c. €5,900 million (+8%), of which c. €1,520 million corresponds to the last quarter of the year.

In 2022, we expect the upward trend in investment volume to continue notably in the residential rental and logistics sectors, as evidenced by the doubling of capital allocation to these two segments over the past three years. Noteworthy is the rise of the nursing home segment and student residences, which increased their share of investment in the Living sector.

The logistics sector’s investment volume has reached c. €2,500 million, an increase of 77% in comparison with 2020. The figure recorded in 2021 is the best investment volume figure since 2017.

Direct investment in office assets closed 2021 with investment of c. €2,200 million (+33%), of which c. €1,530 million corresponds to the investment received in Barcelona and c. €693 million in Madrid.

Retail investment in 2021 has exceeded c. €1,150 million.

The volume invested in residential rented housing (PRS/BTR) in 2021 has marked at c. €2,100 million, representing an increase of 5% in comparison to the previous year. BTR transactions (forward funding and forward purchase) continue to account for the vast majority (77%) of transactions in Q4 of 2021.

From CG Capital Europe, we anticipate that large operations will take place in the upcoming months at the start of 2022, being the main reason the solid recovery of Spain’s economy, providing improved economic indicators, and a disappearing generalized uncertainty that has being present during almost two years.

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